Connect with us

Business & Economy

CBN Governor , Olayemi Cardoso Unveils Plan to Combat Naira Commoditization

Published

on

  • CBN unveiled strategic plan aimed at combating the commoditization of the naira and restoring its credibility as a legal tender
  • Commoditization is the process of treating the national currency as a tradable asset, subjecting its intrinsic value to capitalist principles rather than maintaining its primary function as a means of exchange for economic goods and services

Central Bank of Nigeria (CBN) Governor, Dr. Olayemi Cardoso, has unveiled a strategic plan aimed at combating the commoditization of the naira and restoring its credibility as a legal tender.

Eko Hot Blog reports that the announcement was made during the inaugural Stakeholder Conference held by the Committee of Heads of Banks Operations (CHBO) in Lagos, with the theme “Commoditisation of naira: The Way Forward.”

EDITOR’S PICK

Delivering his keynote address through Senior Special Adviser Fatai Kareem, Cardoso emphasized the risks associated with naira commoditization, noting that it poses a significant threat to the banking sector and the daily lives of Nigerians who depend on the currency for transactions.

He defined naira commoditization as the process of treating the national currency as a tradable asset, subjecting its intrinsic value to capitalist principles rather than maintaining its primary function as a means of exchange for economic goods and services.

According to him, “the naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development.

CBN Governor , Olayemi Cardoso Unveils Plan to Combat Naira Commoditization

Olayemi Cardoso, CBN Governor

Recent trends, however, have seen the naira treated as a commodity rather than fulfilling its primary function as a medium of exchange.

“The commoditisation of the naira, our national legal tender, has become a critical challenge for Nigeria’s financial ecosystem.

It is a problem that not only affects the operations of the banking industry but also the lives of every Nigerian that relies on the currency for his day to day transactions.”

The CBN Governor affirmed the apex bank’s dedication to collaborating with stakeholders in the banking sector to combat the commoditization of the naira. Cardoso outlined several strategies to address this issue, including:

1. Enhancing public engagement and awareness on responsible use of the naira

2. Strengthening cash management systems for fair distribution nationwide

3. Collaborating with law enforcement agencies to enforce regulations and prosecute offenders

4. Promoting digital payment channels to reduce cash transactions and encouraging reporting of digital errors to banks and the CBN

During the event, Chartered Institute of Bankers of Nigeria (CIBN) President, Professor Pius Olanrewaju, highlighted three key areas for consideration: creating public awareness, leveraging fintech innovations to enhance the currency’s value, and enforcing existing regulations.

FURTHER READING

Additionally, CHBO Executive Committee Chairman, Abraham Aziegbe, attributed naira commoditization to scarcity, which has led to its monetization.

Click here to watch video of the week




Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611




 

 

 


DISCLAIMER: Opinion articles are solely the responsibility of the author and does not necessarily reflect the views of the publishers Of  EKO HOT BLOG

For publication of your News Contents, articles, Videos or any other News Worthy Materials, please send to [email protected]

For Advert and other info, you can call 08035617233 or send a WhatsApp Message to 08035617233.

Please drop your comments

Copyright © Ekohotblog

MGID